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Changes to VAT eCommerce Rules

VAT eCommerce rules

Are you up to date on the upcoming changes and how they will impact your clients or business? If not, check out our article to get informed!

It is all happening on the 1st of July 2021. Changes are happening to the VAT eCommerce rules and it will benefit both you and your clients if you are informed on the changes that are going to happen before the deadline.

What’s New?

Briefly, changes are happening to include a new One Stop Shop, a new Import One Stop Shop and new rules for Distance Sales of goods. Other minor changes will be happening to the VAT eCommerce rules but we are here to outline the main differences that will affect you and your clients.

The One Stop Shop

Currently, the Mini One Stop Shop applies only to reporting and payment of EU VAT that is charged and collected on B2C telecommunications, broadcasting and electronically supplied services within the EU. 

As from the 1st of July 2021, the Mini One Stop Shop (MOSS) will become the One Stop Shop (OSS). This will be available to: 

VAT eCommerce rules
  • EU and non-EU suppliers of all B2C services which are taxed in a Member State other than where the supplier is established. In the case of an established service provider in Malta, this would apply, for example, to B2C services connected with immovable property located in another EU Member State or admission to events taking place in another EU Member State.
  • EU and non-EU suppliers of intra-EU Distance Sales of goods.

When it comes to OSS, taxable persons can declare and pay the VAT charges and collected on the relevant B2C supplies of goods/services in the Member States of their customers. Registration for OSS in Malta can be done via the website of the Office of the CFR. You can find more information here.

The Import One Stop Shop

Currently, the VAT Ecommerce rules state that importation of goods of up to a value of €22 is exempt from VAT. As from the 1st of July 2021, this exemption will terminate. From this date forward, all commercial goods that are imported into the EU from a third country or a third territory, irrespective of their value, will be subject to import VAT. 

The Import One Stop Shop (IOSS) is the new electronic portal that businesses can use as from the 1st of July 2021. This portal will aid you in complying with your VAT eCommerce obligations on distance sales of imported good value at less than €150. For more information on the obligation for non-EU suppliers to appoint an EU intermediary under the IOSS, click here.

Any Other Changes?

These new rules will apply to the following businesses: 

  • Electronic interfaces 
  • Online sellers 
  • Postal operations and couriers 

For more information on the specific changes and if it will affect your visit, you can visit the VAT eCommerce resources portal of the European Commission.  

Where We Can Help

Do not worry…there is no need to feel overwhelmed. We have got your back! If you need to make changes to your eCommerce online business, do not hesitate to get in touch. Our team of professionals at NIU will be there to help you every step of the way. Make sure to get in touch with us before the 1st of July 2021, so that we can guide you through the necessary changes within the new rules timeframe.

Get in touch with us today and we’ll discuss over coffee!

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